I"m trying to decide whether or not to pull out of a stock, let it fall when General Motor goes bankrupt, but I do not believe my stock is correlated to GM. However, with all the emotions going around it may end up dropping. I figure to go head take my small profit, see if it falls and then double my share intake when the price does fall. That way, when it goes back up I make twice the profit.
But on other hand, I'm not sure it will fall when GM goes bankrupt, what if it doesn't fall and it keeps rising in price...When Chrysler filed bankrupt, none of my stocks were affected.
Before one of my stock announced 1Q earning, I knew it was going to fall because of lack of goods flowing between countries and I could have sold it off and my portfolio would look like it never sustain a loss, then I could have double my share after the 1Q earning were released. It fell 2.00 after 1Q was released. I cannot believe I didn't go with my gut and missed the perfect opportunity. Never again will I make that mistake.
I feel like I need buy option on this one stock..I'm still skeptical about it going up, but if it does go up, I can still buy it cheap and sell it high.. If not, then I just lose whatever the premium price was...I wish I never learn what option is, it wildly interesting. If I had to be a trader, I work in Chicago on the options exchange.